[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN PORTUGAL] 78
(“PA”). The court’s order is published, formally initiating the PER. Subsequently, within 20 days of said publication, the creditors make their credit claims to the PA. Within five days, the PA drafts a provisional creditors list, which is published and may be contested in court on the next five business days. Oppositions are decided by the court within the same term, and the definitive list is defined. Once the definitive list is determined, negotiations between creditors and the debtor shall start and be concluded within a term of two months, which may be extended once for one month. Being a dejudicialized proceeding, negotiations are organised and supervised by the PA. The court’s main role is to decide on the oppositions to the creditors list and to ratify (or refuse to ratify) the recovery plan approved by creditors. Non-ratification occurs if there is any infringement of non-neglectable procedural rules or infringement of material rules (notably, creditors shall be treated equally and creditors’ positions shall not, without their consent, be less favourable to the positions they would have in a non-approval scenario). The recovery plan approved by the creditors and ratified by the court is binding for all parties, including creditors that have not claimed credits and creditors that did not participate in the negotiations or voted against the plan. The plan’s approval requires a vote of creditors through three systems of majority formation: 1. Applicable to cases in which there is classification of creditors in distinct categories (large companies): the rule of the favourable vote, in each of the categories of creditors, of more than two-thirds of the total votes cast (abstentions are not considered as such); 2. Applicable to all other cases (micro, small and medium enterprises): rule of
approval of the plan which, being voted by creditors whose credits represent at least 1/3 of the credits related to voting rights (abstentions are not considered), obtains the favourable vote of (i) more than 2/3 of the total votes issued and (ii) more than 50% of the votes issued corresponding to non-subordinated credits related to voting rights. ; 3. Applicable in all cases (whatever the size of the company): approved the plan that collects cumulatively (without considering abstentions) the favourable vote (i) of creditors whose credits represent more than 50% of the total credits related to voting rights and (ii) of more than 50% of the votes issued corresponding to non-subordinated credits related to voting rights. The recovery plan must include the following mandatory information: i. The parties affected by the plan, designated individually, and broken down by classes in general terms or, if applicable, by categories, and the amounts of their respective claims or interests covered by the plan;
ii.
The parties, designated and apportioned pursuant to the preceding paragraph, which are not affected by the plan, together with a description of the reasons why the proposed plan does not affect them; The arrangements for informing and consulting employees' representatives, the position of employees within the undertaking and, where appropriate, the general consequences as regards employment, such as dismissals, temporary reduction of normal working hours or suspension of employment contracts;
iii.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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